In late February, CFR reported:
If you’re an elderly artist, or just an elderly American, Congress is also looking at jabbing you beyond the $9.9 billion in Medicare cuts [due to sequester]. The American Association of Retired People (AARP) has notified its 39 million members that the Senate could vote to cut Social Security’s “cost of living adjustment by adopting a so-called ‘chained CPI’ as early as this week.
The AARP sent out an email today saying the Senate could vote on a higher cut within hours:
President Obama is pushing a budget deal that would include a proposal called “chained CPI”, a benefit cut that would take money straight out of your pocket – and some Senators want to take it…
…Chained CPI would change the way the monthly cost-of-living adjustment (COLA) is calculated, cutting Social Security benefits by $127 billion over the next ten years. The consequences would be felt in every town across the country. Millions of Americans would struggle to pay for lifesaving prescriptions, rising utility costs – even to put food on the table.
That $127 billion is a jump from the $112 billion the AARP reported in late February.
In 2010, more than 54 million Americans received approximately $712 billion in Social Security benefits. The programs are primarily financed by taxes which employers, employees, and the self-insured pay annually. These revenues are placed into a special trust fund. Also known as Retirement, Survivors, Disability Insurance (RSDI).